New York S 657: Requires governor to perform cost benefit analysis of tax expenditures

Bill Text

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S00657 Summary:

BILL NOS00657 

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SAME ASNo Same As

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SPONSORKRUEGER

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COSPNSRLIU

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MLTSPNSR

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Amd §181, Exec L

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Requires governor to perform a cost benefit analysis of tax expenditures.

Go to top S00657 Actions:

BILL NOS00657 

&nbsp

01/08/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS00657 Committee&nbspVotes:

Go to topS00657 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00657 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 657

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. KRUEGER, LIU -- read twice and ordered printed, and
 when printed to be committed to the Committee on Budget and Revenue

 AN ACT to amend the executive law, in relation to cost benefit analysis
 of tax expenditures

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivision 1 of section 181 of the executive law is
 2 amended by adding three new paragraphs (c), (d) and (e) to read as
 3 follows:
 4 (c) "Cost benefit analysis" shall mean, for tax expenditures claimed
 5 by taxpayers subject to articles nine (other than section one hundred
 6 eighty), nine-A, thirteen-A, twenty-eight, thirty-two, and thirty-three
 7 of the tax law, a method of determining a tax expenditure's benefit to
 8 New York state based on the tax expenditure recipient's projected job
 9 creation or job retention and/or investment in the state versus the
 10 total amount of revenues foregone under the tax expenditure. For tax
 11 expenditures claimed by taxpayers subject to articles twenty-two and
 12 thirty-one of the tax law, "cost benefit analysis" shall mean a method
 13 of determining a tax expenditure's benefit to New York state based on
 14 the amount of tax relief a tax expenditure provides to particular class-
 15 es of persons or entities.
 16 (d) "Cost benefit analysis ratio" shall mean the ratio calculated by a
 17 cost benefit analysis of a tax expenditure.
 18 (e) "Cost benefit analysis target ratio" shall mean the cost benefit
 19 analysis ratio level that the governor deems to reflect a tax expendi-
 20 ture's adequate level of benefit to New York state when taking into
 21 consideration the amount of revenues the state foregoes because of a tax
 22 expenditure and the amount of tax relief or job creation or job
 23 retention or investment in the state provided or support by the tax
 24 expenditure.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02490-01-5

 S. 657 2

 1 § 2. Paragraphs (f) and (g) of subdivision 2 of section 181 of the
 2 executive law, as added by chapter 23 of the laws of 1990, are amended
 3 and five new paragraphs (h), (i), (j), (k) and (l) are added to read as
 4 follows:
 5 (f) comment, if any, on the effectiveness and efficiency of other tax
 6 expenditures; [and]
 7 (g) general cautionary and advisory notes concerning limitations of
 8 data, estimation procedures, sampling errors and imputed values, promi-
 9 nently displayed[.]; and
 10 (h) a cost benefit analysis of each tax expenditure;
 11 (i) a comparison between each tax expenditure's cost benefit analysis
 12 ratio and the tax expenditure's target ratio, along with an explanation
 13 for any difference between the two ratios;
 14 (j) an analysis of whether each tax expenditure has successfully
 15 achieved the purpose for which the tax expenditure was enacted and
 16 currently serves, including an analysis of the persons or entities that
 17 are benefited by the tax expenditure;
 18 (k) an explanation of the cost benefit analysis formula applied to
 19 each tax expenditure; and
 20 (l) an explanation of each tax expenditure's target ratio, including a
 21 description of why the ratio reflects adequate levels of tax relief or
 22 job creation or job retention or investment in the state.
 23 § 3. Subdivision 3 of section 181 of the executive law is renumbered
 24 subdivision 5 and two new subdivisions 3 and 4 are added to read as
 25 follows:
 26 3. Cost benefit analysis formula. The governor shall develop for each
 27 tax expenditure a cost benefit analy